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New exemption under The Securities Act, 1988 allows for equity crowdfunding

The Financial and Consumer Affairs Authority of Saskatchewan has recently ordered the implementation of an exemption under The Securities Act, 1988 (General Order 45-925). The exemption is intended to allow start-up companies and small businesses to raise capital through equity crowdfunding by selling securities to public investors without the requirement of a prospectus. Although other provinces across Canada have considered implementing similar rules, the order, which was effective on December 6, 2013, makes Saskatchewan the first Canadian jurisdiction to allow such an exemption.

In order to limit the risk for potential investors in crowdfunding, certain conditions will need to be met by the entity wishing to take advantage of the exemption . Such conditions include:

1. The issuer must provide its own securities through the online Portal;

2. The offering size is not to be more than $150,000.00;

3. The exemption is not to be used more than two times in a calendar year;

4. The offering period is to be no longer than six (6) months;

5. No person may invest more than $1,500 in any offering;

6. The issuer must abide by the prescribed filing requirements, before and after the offering;

7. The issuers and investors must have an address in Saskatchewan; and

8. The Portal itself must follow certain requirements, including providing Important Risk Warnings to protect investors;

More information regarding the terms of General Order 45-925 can be found here: